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MACD Signal-Line Cross

What it does: Buys when MACD crosses above its signal line, sells on the opposite cross; skips flat markets. MACD compares a fast and a slow average; its signal line is a smoothed copy. This buys when MACD crosses above the signal line and sells when it crosses back below, or at the stop-loss.

Style: Momentum · Difficulty: Beginner · Risk: medium · Ready: 2 of 2 variants

When people use it: It tends to work in trending markets.

Where it struggles: It struggles in flat markets, reacts late to sharp V-turns, and the cross exit often gives back a good part of a gain.

Markets it was written for: BTC, ETH, majors. Timeframes: 4h (1h-1d).

Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.

Long

Buys when MACD crosses above its signal line, sells on the opposite cross; skips flat markets.

Labels: Momentum, Long, Spot, Beginner, Medium

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF MACD(12,26,9) crosses above MACD(12,26,9) Signal (4h)
  • UNLESS ADX(14) < 20 (4h)

Exit: Indicator-Based Exit

  • IF MACD(12,26,9) crosses below MACD(12,26,9) Signal (4h)
  • Loss controls: Stop-loss % 5%

Settings

Setting Default Editable What changing it does
MACD fast 12 Yes (sets 4 fields) The fast average inside MACD. Lower makes MACD react sooner (more crosses); higher makes it calmer. Changes both the entry and the exit cross.
MACD slow 26 Yes (sets 4 fields) The slow average inside MACD. Lower gives more, earlier crosses; higher gives fewer, later ones. Changes both the entry and the exit cross.
MACD signal 9 Yes (sets 4 fields) How smooth the signal line is. Lower gives more frequent crosses; higher gives fewer. Changes both the entry and the exit cross.
Stop-loss % 5 Yes Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance.

How it works (as shown in the app)

  • MACD compares a fast and a slow average; its signal line is a smoothed copy. This buys when MACD crosses above the signal line and sells when it crosses back below, or at the stop-loss.
  • It skips trades when ADX (trend strength) is below 20, meaning no clear trend.
  • It tends to work in trending markets.
  • It struggles in flat markets, reacts late to sharp V-turns, and the cross exit often gives back a good part of a gain.
  • Built for 4-hour candles (1 hour to 1 day also work).

Short (perp)

Shorts when MACD crosses below its signal line, closes on the opposite cross; skips flat markets.

Labels: Momentum, Short, Futures, Medium, Backtest Only

  • Direction: Sell (short) · Market: swap
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF MACD(12,26,9) crosses below MACD(12,26,9) Signal (4h)
  • UNLESS ADX(14) < 20 (4h)

Exit: Indicator-Based Exit

  • IF MACD(12,26,9) crosses above MACD(12,26,9) Signal (4h)
  • Loss controls: Stop-loss % 5%

Settings

Setting Default Editable What changing it does
MACD fast 12 Yes (sets 4 fields) The fast average inside MACD. Lower makes MACD react sooner (more crosses); higher makes it calmer. Changes both the entry and the exit cross.
MACD slow 26 Yes (sets 4 fields) The slow average inside MACD. Lower gives more, earlier crosses; higher gives fewer, later ones. Changes both the entry and the exit cross.
MACD signal 9 Yes (sets 4 fields) How smooth the signal line is. Lower gives more frequent crosses; higher gives fewer. Changes both the entry and the exit cross.
Stop-loss % 5 Yes Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance.

How it works (as shown in the app)

  • MACD compares a fast and a slow average; its signal line is a smoothed copy. This shorts when MACD crosses below the signal line and buys back when it crosses back above, or at the stop-loss.
  • It skips trades when ADX (trend strength) is below 20, meaning no clear trend.
  • It tends to work in downtrending markets.
  • It struggles in flat markets, reacts late to sharp V-shaped recoveries, and the cross exit often gives back a good part of a gain.
  • Built for 4-hour candles (1 hour to 1 day also work).
  • Shorting means you profit if the price falls and lose if it rises.
  • Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% against you, and you lose the margin you put into it. Keep your stop well inside that.
  • For now this version runs in backtests only; paper and live futures trading are coming later.

Warnings

  • "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
  • Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
  • Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
  • "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.

Good to know

  • After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
  • Changing a setting before adding it also changes the saved name, so you can tell copies apart.
  • Past results don't predict future ones. Try it in a backtest and on paper before using real money.
  • Indicators used: ADX, MACD.